Credit Repair is an ongoing process, like the development of another system. A system that works perfectly will need periodic monitoring and regular reviews to make sure the objectives of the system are achieved. The exact same is true for repairing one’s credit history, including understanding the different areas of interest which may be reported, identifying the various mistakes that may be made and learning how to repair credit score errors. One of the best ways to improve your credit score is via Credit Repair.
There are numerous areas which are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This may lead to quite a few problems, like the inability to get approved for home, automobile and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not being able to obtain certain professional licenses; and a multitude of other problems. By way of example, missing data from a credit report can lower an individual’s credit score by up to 200 points. The most common cause of this problem is the failure to report accurate information.
While there are no federal laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure that all customers have access to fair and accurate reporting. The federal trade commission enacts many rules and guidelines to help Americans understand and avoid common mistakes and the negative consequences of those mistakes. For instance, the three largest credit repair bureaus in the United States must notify consumers of the differences between debt settlement and bankruptcy as well as the choices available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action that may be taken against them and other important information. Among the biggest issues that consumers face is the inability to correctly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements regarding a consumer’s credit report. But, it doesn’t matter if these statements are true or not. For instance, it is perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if this creditor reports that information to all the credit reporting bureaus. So, what if a consumer decides to question that negative information? Is it still legally valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include incorrect negative items on a consumer’s credit report. But that would mean that the creditor is practicing false advertisements. Most credit repair services dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative things. But this will hardly ever happen.
Many credit repair providers will simply instruct their clients not to take action to fix the problem. Why would they do this? If a creditor refuses to take action to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can choose to investigate the dispute and take steps to investigate prior to making a determination. Then it could issue a letter to the creditor notifying them that the information is inaccurate and have to be updated.
This situation plays out over daily. A consumer decides to buy a car and does a little bit of research to find out what the cost will be. After talking with a trader, he makes the decision to purchase the car. A few months pass by and he predicts the dealer and says the cost he’s offered is much less than what he had been told. He asks for a refund and is told he cannot get a refund because the credit report contains an error.
The next step is for him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before hiring the credit repair company, he would have managed to generate a formal dispute. If he hadn’t had the aid of the credit repair company, he might have had to attempt to make the dispute himself. By using the services of a credit repair company, you’re given the advantage of someone else being able to help you in this part of credit repair.